As the clock is tickling and the due date is approaching for filing the annual return under GST Act, every register tax payer needs to file annual return, the form of annual return is made available by the Govt. The form is calling not only for consolidated information but also requires reconciliation. The form is very comprehensive and complex. The following things needs to understand and kept in in mind before proceeding to prepare an annual return.
1) Applicability
Every registered taxpayer is required to file annual return. Except the following
- Casual Tax Payer
- Input Service Distributor
- Non Resident taxable person
- Person paying TDS u/s 51 of GST Act
2) Types of the forms of annual return
- GSTR 9 - to be filed by Regular taxpayer filing GSTR1 and GSTR 3B.
- GSTR 9A - to be filed by person opted for Composition Scheme
- GSTR 9B - to be filed by E -Commerce Operator
3) Due date
- 31st December following the end of financial year. However for the financial year 2017-18 due date is extended to 30th June,2019.
4) Penalty
- Rs.100 per day per act (effectively Rs.200 per day), maximum 0.25% of turnover in the state or union territory
Details required in GSTR - 9
GSTR -9 is divided into 6 parts, basically it calls for summarized (aggregate) information of returns filed during the applicable period.
- Part - I Basic details of Taxpayers (this will be auto-populated by the system itself)
- Part - II Details of supply, Both inward & Outward
- Part - III Details of ITC
- Part - IV Details of Tax Paid
- Part - V Summary of transaction of previous Financial year omitted or amended during current financial year
- Part - VI Other information, that includes Demands & Refunds, HSN wise summary of quantity of goods received & Supplied with tax details, Late Fees payable & Paid and bifurcation of inward supplied received from different type of tax payers (Deemed supplies, Composite tax payer , goods supplied on approval basis)
Following are the important points that should be kept in mind for preparation of annual return.
- The main source of preparing annual return will be GSTR 3B and GSTR -1.
- Matching of turnover in books of account along with data declared in GST portal, not only invoices but debit & Credit notes shall also be in agreement with books.
- Correctness and claim of input tax credit ( Fixed assets shall be checked properly for claim of ITC on capital Goods) , refer GSTR 2A, and also check whether payment to supplier is made within 180 days, credit should be reversed in case of non-payment.
- Matching of e way bill with tax invoice issued.
- Thoroughly verify the expenses and check whether RCM is complied with, paid and credit is claimed for the same.
- Segregation of ITC , the ITC claimed should be bifurcated into Inputs, Input services and capital goods, proper accounting system to be followed for the same
- List of transactions for which amendments made during the current year.
- In case person has opted as regular tax payer from composite scheme, they requires to file 2 Annual return GSTR 9A for period during which opted as composite dealer and GSTR 9 for remaining period.
- Every tax payer whose turnover exceeds Rs 2 crore during a financial year, is required to submit audited annual accounts and a reconciliation statement in GSTR-9C.
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